Keating Five Senators Pressure FHLBB to Halt Lincoln Investigationtimeline_event

systematic-corruptionregulatory-capturekeating-fivecampaign-contributionslincoln-savingsfhlbb
1987-04-01 · 1 min read · Edit on Pyrite

type: timeline_event

Five U.S. Senators—Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald Riegle (D-MI)—meet with Federal Home Loan Bank Board officials to pressure them to halt regulatory investigation of Charles Keating's Lincoln Savings and Loan. The senators had received $1.5 million in campaign contributions from Keating in exchange for regulatory intervention. Following the meeting, the FHLBB backs off enforcement action against Lincoln, demonstrating successful legislative capture of financial regulation. This coordination between industry money and senatorial pressure exemplifies systematic corruption across branches of government.